J10 23 (b) page 29.
DISCUSS WHY THE MIXED ECONOMY IS THE MOST COMMON ECONOMIC SYSTEM.
Mixed economy is an economic system where the factors of production ((FOP)) is partly owned by private individuals and partly owned by government. In other words, mixed economy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies A country's FOP that is entirely owned by private individuals is known as free market economy. A country's FOP that is entirely owned by government is known as planned economy, also known as command economy.
The economic structure of a nation is very important for the progress of the country. In mixed economy, The presence of private enterprise ensures that there is fair competition in the market, and also the quality of products and services are not compromised. Not only that, the market price are well standardized. This is because the government with its regulatory bodies ensure that the market price do not go beyond its actual price and is also reasonable for the citizens to purchase it.
Furthermore, in a mixed economy, the resources are utilized efficiently as both government and private enterprises are utilizing them. Therefore, the national resources are optimally utilized. Besides, in mixed economy, the people are given more power. This is because the general people have more say when it comes to the quality and the prices of products and services.
Mixed economy does not allow monopolies. It bars a few sectors, a mixed economy does not allow any monopoly as both government and private enterprises enter every sector for business.
